Actual Direct Labor Costs May Differ from the Flexible Budget

Multiple Choice

Actual direct labor costs may differ from the flexible budget amounts because

A) the company may set a standard wage rate, and the market forces may require a change in that rate.
B) employees may be compensated based on the number of units produced.
C) the labor contract may require a higher wage rate than what the company is paying.
D) employees always operate at the desired efficiency level.